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Highlights
- New Talisman Gold Mines faced a challenging 2021.
- A new board was appointed in late 2021 due to many disclosure breaches and a growing discontent with NTL’s governance and performance.
- The condition to transfer the Broken Hills mining permit remained unsatisfactory and the purchase agreement was terminated.
New Talisman Gold Mines Limited (NZX:NTL) is an NZ-based mining company engaged in the exploration and production of gold and silver. The Company has permission for mining as well as exploration over the Talisman Gold mine project in the Hauraki Gold Field.
The Group took a review of the Company’s priorities during COVID-19 curbs in the first half of 2020. Three key areas to prioritise were found to be identifying a treatment route of the ore, searching for a secondary source of the ore for economies of scale and finding extra targets within the Talisman mine.
The year 2021 had been a challenging year for NTL but the company progressed amid the COVID-19 pandemic and the political atmosphere.
New board appointments in late 2021
A new board was appointed in late 2021 due to many disclosure breaches and a growing discontent with NTL’s governance and performance led to several resignations.
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The new Board reviewed company objectives and reprioritised them to drive the Company ahead. The NTL Board was asked to respond to several regulatory questions related to the earlier administration. The Board was also involved in forming a future strategy for the business.
NZ RegCo asks to be cautious of disclosure breaches like NTL
A capital raising was undertaken in 2019 and many disclosure breaches were done under the previous Board, as per NZ RegCo.
The stock market’s supervisor investigated that NTL had issued a large portion of shares without shareholder consent in 2019 and failed to inform investors about the new acquisition agreement. NTL also traded without enough directors on its audit committee.
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NZ RegCo did not take any major enforcement action and asked companies to be aware as such breaches call for serious action.
Broken Hills permit transfer was unsatisfactory
NTL got the opportunity to acquire all the shares in Broken Hills Historic Mine Limited in 2021. The acquisition was likely to give extra benefits to the Talisman project, NTL shareholders, the environment and the community at large.
NTL’s previous Board had agreed to sell Broken Hills Historic Gold Mine to NTL in late September on the premise that the mining licence would be transferred to NZPAM by 31 December 2021.
The new Board, however, determined that the requirement could not be satisfied, and the contract had to be cancelled. In addition, the listing of NTL’s subsidiary Coromandel Gold Ltd. was also halted due to this decision.
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NTL issued 62.08 million shares in its final settlement of the Capella Vanuatu acquisition at the end of the December quarter. The Company made a payment of $45,007 for Directors’ fees and consulting services to firms where directors had an interest.
New Talisman ended the day flat to close at $0.002.
Outlook
NTL’s goal for the coming quarter is to continue developing a strategic plan that focuses on the Talisman Mine's primary asset.
(NOTE: Currency is reported in NZ Dollar unless stated otherwise)
